APY: The central government led by Narendra Modi has a pension scheme for the elderly that requires just a small investment. This is known as the Atal Pension Yojana. The scheme was launched on May 9, 2015, and became effective on June 1, 2015. Initially, it was open to all Indian citizens aged 18 to 40. However, as of October 1, 2022, income tax payers can no longer participate in the scheme.
Start investing from just Rs 42
This plan offers subscribers a guaranteed monthly pension starting at age 60, based on their contributions. The pension amounts available are Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, and Rs 5,000 per month. The minimum contribution period is 20 years, depending on when you join. If you start at 18, your monthly contribution will be between Rs 42 and Rs 210. If you join at 40, it will range from Rs 291 to Rs 1,454 per month. You can pay your premiums monthly, quarterly, or every six months.
Lifelong pension scheme
With this scheme, subscribers receive a pension for life, ranging from Rs 1,000 to Rs 5,000 starting at age 60 until they pass away. If the subscriber dies, the pension goes to their spouse or the designated nominee. Subscribers can also benefit from deductions under Section 80CCD of the Income Tax Act. Exiting the scheme before age 60 is only allowed in cases of death or terminal illness. You can exit voluntarily, but you will only get back your contributions (plus interest), and any government co-contributions will be lost.